Centre issues new rules to simplify trade certificate regime

The validity of the Trade Certificate has been increased from 12 months to 5 years as per the new rules. Applications to be filed on Vahan portal

new rules on trade certificate regime

The Union Ministry of Road Transport & Highways (MoRTH) has notified new rules to simplify and streamline the Trade Certificate regime under the Central Motor Vehicle Rules, 1989, in an effort to promote ease of doing business.

Due to certain anomalies in the existing rules, the applicability of the Trade Certificate was open to interpretation in many cases, leading to harassment of many business establishments.

Moreover, an application was required to be filed physically at the RTO which was a time-consuming process.

The key provisions of the new rules say that a Trade Certificate will be required only in case of vehicles which are neither registered nor temporarily registered.

Such vehicles can only be in the possession of a dealer/manufacturer/importer of motor vehicles, or a test agency specified in rule 126.

It also said that the application for Trade Certificate and Trade Registration Marks can be made electronically on the Vahan portal, without the need to visit the RTO.

Further, the applicant can apply for multiple types of vehicles in a single application.

The time period for grant or renewal of trade certificate has been fixed at 30 days, wherein applications not disposed within 30 days shall be deemed approved. The validity of the Certificate has been increased from 12 months to 5 years as per the new rules.

Also Read: Centre makes Trade Certificate registration online to promote ease of doing business

Besides, a dealership authorisation certificate (Form 16A) has been introduced to bring about uniformity across dealership authorisations.

The Trade Certificates has been made co-terminus with the dealership authorisation. Display of dealership authorisation certificate in showrooms/godowns has also been mandated.

The date of implementation is proposed with effect from November 1. The existing tradecertificates will continue to be valid till their renewal is due.

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